Risk Management

Risk management is optimized by:
  • Hedging with a “portfolio strategy”, generally producing income, rather than an “insurance strategy” that guarantees a cost to hedge.
  • Using highly effective, highly correlated hedges that qualify for hedge accounting treatment.
  • Freeing up capital required for hedging by using exchange traded futures and options-based hedges.
  • Using state of the art risk analytics to graphically demonstrate projected price performance.
  • Complying with all accounting and regulatory rules.
  • Where an “insurance strategy” is appropriate, minimizing cost by using extremely liquid and efficient exchange traded options to protect the downside risk while maintaining potential upside gains.